Taiwan rejects the “50 -50” suggestion for the sheet

The island’s higher trade negotiator said that Taiwan will not accept Washington’s proposal to manufacture half the chips that it currently provides to the United States.

Speaking to reporters, Cheng Li Cion, Deputy Prime Minister in the country, said on Wednesday that the proposal of the “50-50” division in the production of semiconductors was not discussed, as it returned from commercial talks in the United States, According to the Central News Agency in Taiwan.

Cheng said the talks focused on reducing tariff rates, securing exemptions from the tariffs accumulation – additional duties – and reducing fees on Taiwanese exports. Taiwan is currently facing a “mutual” tariff rate of 20 %.

Washington held discussions with Taipei on the division “50-50” in the production of semiconductors, which would cut American dependence on Taiwan, Trade Minister Howard Lootnick He said at the end of last week in an interview with NewSnation, adding that 95 % of the American demand has been currently meeting through the chips produced inside Taiwan.

“My goal, and the goal of this administration is to get the manufacture of chips significantly – we need to make our own chips,” said Lootnick. “The idea was that I installed (Taiwan), let’s reach 50-50. We produce half, and you produce half.”

US President Donald Trump was also aimed at dominating the island in chips earlier this year, accusing “theft” of American chips.

The American Trade Representative and Ministry of Economic Affairs office did not respond immediately for CNBC Comments.

Lottennik’s proposal was condemned by politicians in Taiwan, with Eric Zhu, the head of the island’s main opposition party, Kumenang, describing it as “exploitation and looting”, according to the Central News Agency report.

“No one can sell Taiwan or TSMC, and no one can undermine silicone shield in Taiwan,” said Zhu. Taiwan semiconductor manufacturerThe pioneer in the world in manufacturing advanced chips.

Taiwan’s crucial position in producing global chips has affirmed the defense of the Al -Jazeera nation against direct military action from China, and is often referred to as the theory of “Silicon Shield”.

In an interview with newspapers, Lootnick reduced the “silicon shield”, on the pretext that Taiwan will be safer with a more balanced chip between Washington and Pipe. Beijing looks at the island of Taiwan, which is governed democratically as its own lands and pledged to restore this By force if necessaryWhile Taipei refuses these claims.

It was reported that the head of the People’s Taiwan Huang Co Chang described Lootnick’s proposal to try to “cavity the foundations of the technology sector in Taiwan.”